In this article, the authors analyse the existing foreign insolvency prediction models of the company and on the basis of the sample of solvent and insolvent companies they aim to develop a new model to predict insolvency of a company by binomial logistic regression (LR), which will be suitable for the business environment in the Republic of Serbia. The research seeks to determine statistically most important financial ratios in predicting insolvency of Serbian companies. As a result of research, a model for the prediction of bankruptcy was created, which accurately classifies 82.9% of solvent ('healthy') Serbian companies and 93.3% of Serbian companies which have undergone bankruptcy proceedings (Serbian insolvent companies), while the average (total) accuracy of the prediction model is 88.4% of the cases. JEL CLASSIFICATIONSc38; c50; m21; G33 ARTICLE HISTORY

Poslovanje čiji je jedini cilj sticanje profita bez brige o društvu, okolini i stejkholderima, ne može biti dugoročno održivo. Iz tog razloga sve veći broj kompanija u svoje poslovne strategije inkorporira koncept korporativne društvene odgovornosti. Među njima zapaženo mesto pripada NIS grupi. Tradicionalni sistem finansijskog izveštavanja, koji se pretežno zasniva na kvantitativnim informacijama, nije u mogućnosti da na adekvatan način odgovori na informacione zahteve stejkholdera kada su u pitanju informacije o društveno odgovornom i održivom poslovanju kompanija. Rastuća svest o potrebi očuvanja životne sredine i rešavanju socijalnih pitanja stvara pritisak na kompanije da povećaju svoju odgovornost prema okruženju i unaprede kvalitet izveštavanja o održivom razvoju. Svrha ovog rada je da istraži vezu između izveštavanja o zaštiti životne sredine i održivog razvoja.Ključne reči: korporativna društvena odgovornost, nefinansijsko izveštavanje, ekološke i socijalne performanse, održivi razvoj.

The flexibility in accounting standards and principles, lead to incentives for managers to show a good picture of the companies. It is logical and rational for managers to attempt to smooth income by using certain accounting devices to reduce the companies’ income fluctuation over time to improve relations with creditors, investors, and employees. Income smoothing enables companies to stabilize earnings and thereby increase earnings predictability. For detecting income smoothing through examining the financial statements Eckel’s (1981) approach (income variability approach) has been the most popular and most used one. In this research study, we use a selection criterion between smoothers and non-smoothers hotel companies based on the income smoothing. This study aims to classify Serbian hotel companies during the period 2016-2019 as smoothing and non-smoothing hotel companies. The method used to determine the presence or absence of income smoothing and the company value results is based on the coefficient of variation model proposed by Eckel (1981). According to the coefficient of variation method, the more the income smoothing (IS) index tends to zero, the more smoothed out the company’s earnings are. This study examines the presence of artificial income smoothing in 22 Serbian hotel companies. A binomial test is used to test the hypothesis. As a result of research, there are no significant statistical indicators of income smoothing practices in Serbian hotel companies during the period 2016-2019.

This study examines the effect of financial performances on earnings quality using a sample of Serbian hotels during the period 2015-2019. First, the authors build a multidimensional measure of earnings quality including attributes as the hotel’s going concerned, size, current liquidity, age, profitability, and leverage. Second, the authors examine variables that are potentially associated with earnings quality. The methodology includes descriptive statistics, univariate test, correlation matrix for the variables, multivariate regression, F-test. This paper presents managerial implications for professionals, users of financial statements, and academics.

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